CA Final Capital Gain Objective question Answers

By | March 19, 2016
Objective Questions on Basic Concepts of Capital Gain

1 Which of the following is not a capital asset ?
a Car used for household purposes c Rural Residentail Land
b Jewellery d Patent Rights

2 Which of the the following asset shall be long term after completing the holding period of more than 12 months?
a Shares of Public Ltd. Company c Non-Equity Oriented Mutual Fund Units
b Share of Private Ltd. Company d Listed Debentures

3 In computing period of holding, in which of the following case the holding period of predecessor is not included?
a Assets received under gift from relatives c Assets received by way of will
b Assets received under gift from non-relatives d Assets received by way of inheritance

4 Cost of the previous owner is not relevant in which of the following case:
a Assets received by way of will c Assets received by way of Exchange
b Assets received by an Indian amalgamated co. d Assets received on partition of a HUF

5 Enhanced compensation on compulsory acquistion is taxable in which financial year:
a Year in which compulsory acquistion takes place c Year in which enhanced consideration is received
b Year in which enhanced compensation is agreed as per court ruling d Year in which first installment of enhanced consideration is received

6 Taxability under the head ‘capital gain’ is prima-facie not dependent on:
a Captial Asset c Chargeability
b Transfer d Exemption

7 Which of the following activity is not a transfer:
a Sale of property through power of attorney c Family settlement
b Exchange of asset for asset d Redemption of Zero Coupon Bond

8 Introduction of an asset by partner may be taxed as per __________ in the hands of the partner
a Fair market value of the asset c Value as per the books of the transferee
b Value as per the books of the transferor d Historical cost of the asset

9 Which of the following is a taxable receipt under the head capital gains
a Redemption of Key Man Insurance Policy c Receipt of compensation from insurance company after theft of an asset
b Payment received for not to conduct business d Receipt of consideration on transfer of tenancy rigths

10 Brokerage paid on acquiring an immovable property is part of
a Cost of Acquistions c Expenditure in relation to transfer
b Cost of Improvement d None of them

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